In a twist of irony too delicious for much of the internet to ignore, multi-million-selling rapper and Vitamin Water spokesman 50 Cent (Curtis Jackson), famous for his 2003 albumÂ Get Rich or Die Tryin’,Â has declared Chapter 11 bankruptcy in the United States in recent days.Â The filing comes just three days after Johnson was ordered to pay $5 million to his rival Rick Ross’ ex-girlfriend, Lastonia Leviston, who sued him for posting a sex tape online without her consent.
The dollars-and-cents puns practically write themselves in this case, but the rap mogul’s unfortunate financial situation provides a timely example of the challenges of bankruptcy and the immediate and broad impact that it has on an individual’s financial situation both in present and future. It goes to show that a lack of careful planningÂ can render anyone’s financial success less than bulletproof.
In the United States, Chapter 11 bankruptcy allows for those filing to continue work and pursue the reorganization of their finances rather than facing a seizure of assets.Â In Canada, bankruptcy and insolvency are governed by the Bankruptcy and Insolvency Act (BIA.) While those declaring bankruptcy are able to free themselves from a large or complete portion of existing debts as well as from the pressure of collections agencies, there are a host of overwhelmingly challenging aspects associated with taking this step. Not the least of these is that it willÂ take up to seven years after discharge for the impact on your credit profile to dissipate.
Make no mistakeÂ â bankruptcy is a last resort, and evenÂ bankruptcy trustees will acknowledge that. Debt consolidation loans can be an alternative to a declaration of bankruptcy that will help rebuild your finances over time. If you have filed for bankruptcy, consumer proposal or credit counselling, your most recent financial history will generally be more heavily weighted: however, these circumstances do not prevent you from contactingÂ our team to start developing a sustainable solution for working your way back to financial stability.